Risk versus reward

Three people discussing risk

I’m worried about the risks I’ll have to take to exploit my business’s growth opportunities. How do I find a balance?

Plan for the opportunities in a way that enables you to mitigate the risks.

How do I do that?

Identify all the possible risks your business faces as it grows. If you need help identifying these risks, take advice – from your bank’s small business team, for example, or your accountant.

Won’t I scare myself off?

Not if you act strategically. Having identified the risks that concern you most, take steps to counter them. If, say, you’re worried about hiring a new member of staff in case demand eases, hire someone on a short-term contract to start with.

And if I think a risk is too large?

Don’t take it. But don’t forget there is a risk in not going for growth too.

Is it worth it?

Entrepreneurs are risk-takers by nature – you wouldn’t have started your business otherwise. If you think the rewards on offer are worth going for, and you have a plan for managing the risks of doing so, hold your nerve.


How to

Three people discussing funding

Funding for growth.

Experts say

Chris Hodges

Chris Hodges, Investment Director, Business Growth Fund.